New Zealand dollar on track to parity with Australia thanks to booming economy

New Zealand is forecast to be among the world's fastest growing economies in 2014.

Jeremy Bank: www.sxc.hu

A resurgent economy has economists tipping the New Zealand dollar to reach parity with its Australian equivalent some time this year.

As Australia's economic growth is tipped to slow in 2014, on the other side of the Tasman Sea global investment bank HSBC is forecasting New Zealand will be among the world's fastest growing economies.

Mexico, Israel and Chile are the only Organisation for Economic Cooperation and Development (OECD) countries expected to post stronger growth than New Zealand this year.

HSBC economist Paul Bloxham says just as Australia's mining boom over the past decade helped push up the value of the dollar, New Zealand's currency is also expected to get a boost.

"We expect that the New Zealand dollar might even get to Aussie dollar parity for the first time in 40 years," he said.

"That's a big deal for New Zealand of course, because it will put some pressure on the traded sectors of the economy."

It is something Tim Mackle from Dairy New Zealand is watching closely.